The State Bank of Vietnam (SBV) has relaxed monetary measures in the context of sharp declines in the foreign exchange rate in recent days.

The SBV this week also continued to reduce the bill interest rate from 4.2 per cent per year to 4.15 per cent per year.

Measures implemented by the State Bank of Vietnam (SBV) to fight off the dollarisation of the economy have produced positive effects in stabilising the exchange market, increasing foreign reserves, remittance flows and foreign investments.

The period of cheap money in Vietnam is coming to end as deposit interest rates are increasing, say finance experts.

Banks lent more than 480 trillion VND (18.88 billion USD) to economic entities in June, demonstrating the sector’s efforts in concretising the Government’s credit goal of 5-6% to the end of Q2.

Vietnam ranks 57th out of the 125 surveyed countries in terms of budget transparency, up 11 places compared to 2021, according to the Open Budget Survey (OBS) 2023 released recently by the International Budget Partnership.

The USD price in the free market has surged past 26,000 VND/USD (selling), marking its highest level ever. This new peak sees the free USD price nearly 700 VND higher in the buying price compared to bank rates.

The US Treasury has recently made a positive assessment of Vietnam's monetary policy, reaffirming that Vietnam "does not manipulate currency."

The US Federal Open Market Committee (FOMC) has decided to keep the benchmark interest rate unchanged for the seventh consecutive time, maintaining the rate at a 23-year high of 5.25-5.5% per year.

According to SBV’s data, as of May 24, it sold a total of 48,500 taels of SJC gold with the winning bid price of VNĐ81.3-89.4 million per tael. It meant the estimated amount of money the SBV earned from the gold sales was about VNĐ4.2 trillion.

The Vietnam dong currency is expected to fall to VND25,600 per U.S. dollar in the second quarter of 2024 but appreciate to VND24,800 in the final quarter of the year and VND24,600 in the first quarter of next year.

ADB forecast that low domestic interest rates, fiscal policy measures, and wage increases will drive consumer services in 2024.

The exchange rates offered by the major banks have all hit the prescribed ceiling.

Enterprises which have to import raw materials for production or have dollar-denominated loans are very worried as their input costs will increase significantly.

On the interbank market, the average USD/VNĐ exchange rate is gradually approaching the peak of VNĐ24,867 per dollar from November 2023.

According to experts, the Fed’s interest rate cut will support Việt Nam’s monetary policy management as the State Bank of Vietnam (SBV) may not be under pressure of dollar appreciation after the greenback weakens in the wake of the Fed’s rate cut.

The State Bank of Vietnam (SBV) has withdrawn nearly VND75 trillion from the banking system over the course of the last five trading sessions.

US dollar price in both official and unofficial markets has cooled down after the State Bank of Vietnam (SBV) intervened to reduce the speculation of the greenback on the domestic market.

The Vietnamese dong or VND is expected to strengthen slightly against the US$ in the latter half of this year, along with the country's economic recovery and the anticipated weakening of the greenback, according to Singapore-based bank UOB.